Tax Planning
Services
Tax Planning Services can be a little tricky if you do not have the right company managing or helping you with your financial data.
Our company leads in this department and will help, assist and train at any level of partnership to put your finances on track.
Tax Planning
Services
For small, medium and large companies
Tax Planning Services
What is Tax Planning?
Tax planning is the analysis of a financial situation or plan to make sure all things work together to allow you or your business to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning is an essential part of an individual or businesses financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success
Understanding Tax Planning
Tax planning goes over different considerations, which includes timing of income, size, and timing of purchases, and planning for any other expenses. Also, selection of investments and types of retirement plans must complement the tax filing status and deductions to create the best possible outcome.
Tax Planning vs Tax Gain or Loss
This is another form of tax planning and management relating to investments. If you know how to use this correctly, you can use your the portfolio's losses to offset overall capital gains. According to the IRS, short and long term capital losses must first be used to offset capital gains of the same type.
In other words, long-erm losses offset long-term gains before offsetting short-term gains. Short term capital gains or earnings from assets owned for less than one year, are taxed at ordinary income rates.
FREQUENTLY ASKED QUESTIONS
What Are Basic Tax Planning Strategies?
Some of the most basic tax planning strategies include reducing your overall income, such as by contributing to retirement plans, making tax deductions, and taking advantage of tax credits.
How Do High-Income Earners Reduce Taxes?
There are many ways to reduce taxes that are not only available to high-income earners but to all earners. These include contributing to retirement accounts, contributing to health savings accounts (HSAs), investing in stocks with qualified dividends, buying Muni bonds, and planning where you live based on favorable tax treatments of a specific state.
Can I Contribute to a 401(k), a Traditional IRA, and a Roth IRA?
Yes, you can contribute to a 401(k), a traditional IRA, and a Roth IRA. You must ensure that you only contribute the legally allowed amount per year. If you invest in both a traditional IRA and a Roth IRA, you cannot contribute more than the overall maximum allowed for an IRA.
The Bottom Line
Tax planning involves utilizing strategies that lower the taxes that you need to pay. There are many legal ways in which to do this, such as utilizing retirement plans, holding on to investments for more than a year, and offsetting capital gains with capital losses